Indonesia-based P2P lending fintech startup KoinWorks has officially become a Series A-company after announcing yesterday that it has received a total of IDR 230 Milyar (US$15.7M) funding led by Mandiri Capital Indonesia (MCI), with Gunung Sewu and Convergence Venture taking part.
KoinWorks claims to be the P2P lending company that owned the majority of retail lending market in the country. The company just received its operational permit from Otoritas Jasa Keuangan (Financial Services Authority) in 2016 and has been leading the P2P fintech market since.
The funding would be the start of the company’s focus on developing a safe, innovative, and relevant finance platform and financial products for digital SMEs in Indonesia. MCI will also get involved in the development of financial products by KoinWorks as a supervisor.
“Mandiri Group supports KoinWorks to provide financial access to all digital SMEs in Indonesia. KoinWorks was able to provide the positive prospect of the P2P lending market,” explained Eddi Danusaputro, CEO of Mandiri Capital Indonesia.
In the past, the company focussed on lending money to digital SMEs that belong to fashion, electronic, cosmetic, technology, and F&B industries. All of the lending approved were companies that have operated for under 5 years.
“Seeing that almost every SMEs have adopted digital market, this is a market potential that KoinWorks has been focusing on. We aim to have financial inclusion in the country,” said Benedicto Haryono, Co-Founder and CEO of KoinWorks.
KoinWorks found its groove with the rapid growth in smartphone usagein Indonesia and its affordable investment for as little as US$6.80 in the platform. They believe the easy access and risk-transparency the company provided with the filtered and analytical investment products available will help change the public’s behavior towards investment.
KoinWorks claimed a 90 per cent success rate of the profiting business loan, with almost 2,500 verified loans topping up their loans.
Image Credit: KoinWorks